Gravity4 says raises offer for Sweden's Tradedoubler, shares suspended again
20/05/2015 16:47
By Anna Ringstrom and Helena Soderpalm
STOCKHOLM, May 20 (Reuters) - U.S. online marketing firm
Gravity4 said on Wednesday it had raised an offer for Swedish
peer Tradedoubler TRAD.ST to 565 million crowns ($67.7
million), but Tradedoubler declined to confirm any formal
takeover bid had been made.
Shares in Tradedoubler soared on Gravity4's statement before
being suspended for a second time in less than a week.
Tradedoubler said last week it had received a letter from
Gravity4 stating its interest in buying shares in the company,
adding that no formal takeover offer had been presented.
Tradedoubler Chief Executive Matthias Stadelmeyer declined
to comment on Wednesday whether Gravity4 had since then made any
formal offer for the Swedish company.
"This is a matter to be handled by the board of directors of
Tradedoubler ... The situation is investigated together with the
stock exchange in Stockholm. Once that is all clear we will
issue a press release," he told Reuters.
Gurbaksh Chahal, founder and chief executive of Gravity4,
was not available for comment.
Gravity4 said in a statement it had doubled a previous offer
to 565 million crowns, corresponding to 13.40 crowns per
Tradedoubler share. However, it said half of the offer would
consist of stock in the unlisted company, raising the question
how these shares would be valued.
Two weeks ago Gravity4 said it was making a $350 million bid
for Rocket Fuel FUEL.O . Rocket Fuel's board rejected the
offer, saying it was "not credible, highly conditional and
inconsistent with customary public company transactions".
ID:nASB09N4Q
The company's latest acquisition was that of Swedish adX
Search on May 4.
Tradedoubler shares have soared over 60 percent since the
company confirmed Gravity4's interest in the company on Friday.
The shares were suspended for a few hours on Friday.
($1 = 8.3390 Swedish crowns)
(Additional reporting by Olof Swahnberg, editing by David
Evans)
((anna.ringstrom@thomsonreuters.com; +46 8 700 1134; Reuters
Messaging:
anna.ringstrom.thomsonreuters.com@thomsonreuters.net))
Keywords: TRADEDOUBLER M&A/